Sub Account Equity? 2 March at 3:57PM in Mortgages & endowments 2 replies 87 views

jester212

Good afternoon,

I have searched the forum but I couldn't find anything that helped me with my query. 

My scenario is my partner and I have 2 mortgage sub-accounts, one is her old balance from her previous property and the other is the remaining balance for our current property. One sub-account is fixed until 2026 while the other is expiring this October. The one expiring this year is currently at 1.87% and has a balance of circa £75k, my question is how is the LTV worked out when our current lender looks to eventually offer a new deal? I'm trying to estimate how much of a rise we will end up paying but don't really have a clue where to start.

Trying to use online calculators is giving a mixed bag of results. Is it a case I just have to wait until my current lender offers us a new deal for said subaccount?

Any information is greatly appreciated. 

kingstreet

You apply the overall LTV.

If the property is worth £300k and the total loan is £200k, it's a 66% LTV on all the borrowing regardless of the split being (eg) £125k and £75k.

TrickyDicky101

You won't be able to remortgage one sub account with another lender - you would need to redeem both to be able to remortgage elsewhere (thus incurring ERCs on the other sub-account).